Bitcoin Drops 14.35% Year-to-Date Amid Market Volatility

Bitcoin's price has been experiencing significant volatility, with concerns growing about whether it will drop below the $70,000 psychological support zone. The digital currency has shed its earlier gains, and the market has been unstable, triggering more sell-offs in risk-on assets. Since the start of the month, Bitcoin has lost 14.35% of its value year-to-date, directly correlating with the stock market's performance.

At the time of writing, Bitcoin was trading at $80,846.20, down by 2.05% in 24 hours. The coin dropped from a high of $84,301.69 to as low as $79,931.85, showcasing its volatility. The market rout followed false news regarding the Trump family and Binance, which initially fueled a boost in the market but was later denied by Binance's founder, Changpeng ‘CZ’ Zhao, further triggering market volatility.

Throughout this month, Bitcoin has recorded a number of sharp selloffs, most of which were triggered by macroeconomic trends bordering on President Donald Trump’s induced trade war. The Bitcoin Volatility Index is at 2.75, the highest level over the past six months. This high volatility implies that the price of BTC may record a very sharp, unannounced drop. However, the mix of positive updates in the ecosystem is likely to boost BTC’s resilience moving forward.

Despite the 15.59% increase in the past 30 days, the coin’s price has never dropped below the $70,000 support line. If this trend is sustained, BTC may resist further selloffs. It is worth noting that the strategic Bitcoin reserve update from earlier in the month has failed to ignite a massive rally in the coin’s price. The initial investor disappointment came when no new funds were allocated to buy the coin for the reserve. However, Senator Cynthia Lummis’s reintroduction of the Bitcoin Act Bill is poised to change investors’ perceptions soon. If passed by the legislature, it might create a primary basis for betting on the coin in the long term.

With the long-term prospect of Bitcoin, market leaders have reiterated their price target for the coin. ARK Invest CEO Cathie Wood predicted a deflationary boom and maintained her $1.5 million BTC price target by 2030. Experts have also weighed in on the potential floor for Bitcoin, with some predicting that it could find a floor between $60,000 and $65,000 if it falls below $70,000. Others see potential for Bitcoin recovery, predicting a test of the $70,000 to $75,000 range. However, not all analysts are optimistic, with some predicting a steep decline given the high level of open interest.